Interloop Limited has planned to invest $100 million in its apparel project mainly to enhance the production capacity to meet the demand of domestic and foreign customers.
According to the stock filing, the company is going to start civil work of an apparel project, capital outlay of which is $100 million for which the company has arranged LTTF of Rs. 5 billion, and the remaining will be financed by the company’s internal cash generation.
Interloop Limited is engaged in the business of manufacturing and selling socks, leggies, denim, yarn, garments, and allied products, providing yarn dyeing services and generating electricity for its own use. In the first quarter of 2021-22, the company recorded a profit of Rs. 2.69 billion showing a year-on-year growth of 94 percent.
New Projects
The company is also going to expand its manufacturing facility further in phases which include the addition of the 6th Hosiery Plant in the next financial year 2023-24 as per the Company’s Vision 2025. The addition of the new plant was planned for the year 2024-05 but the demand for the product has continued to rise at a staggering pace which needs an early setting up of the planned plant.
Interloop CEO briefed the board of directors stating that the company’s profitability will increase substantially with the addition of the 6th plant which will be helpful for setting up other projects as per Vision 2025, according to the stock filing.
The board of directors gave a green signal to the management raising capital either through foreign investments or through the issuance of the right shares in the stock exchange. The company recently added the 5th Hosiery Plant which has been operational at its full capacity but the requirement of the customers is not being met at par with the growing demand. Looking at the demand, the company has planned to set up a vertically integrated knitwear plant, and construction work will commence during Q2 FY22.
It has also set up its first phase of the solar energy project at the Lahore Denim plant and the next projects are in the pipeline. It is continuing with its policy of investment in modernization and technological advancement of its equipment, processes, and people, in addition to expansion. Interloop Limited was established in 1992 in Faisalabad. The manufacturing facilities are located at 1-km, 7-km Jaranwala road, Khurrianwala, Faisalabad, and 8-km Manga Mandi, Raiwand Road, Lahore.
